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  • I write this blog 5 days a week on the subjects of investments, success and life. Stocks, technology, pundits, I analyze them all, and even throw a couple darts of humor. Currently, one of the Top-5 fastest growing investment blogs - I take suggestions and ideas here: robwallaston@gmail.com I hope to see you daily. Rob Ivanoff "Wallaston" ma and black sea

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    • « All four Major Averages closed in the lower half of their range for the day | Home | “The Market is Showing Many Positive Signs, but It is Getting Somewhat Overbought” »

    “Sooner or Later These Averages will Break Free”

    By Rob | May 16, 2008

    “People don’t realize that in 1820, China was not only the most populated nation in the world, not only with the most land area, but was the greatest economic power in the world” Princeton University Economics Prof. Burton Malkiel

    To add fuel to the fire, I would add that in 1820 China and India contributed 50% of the world’s GDP. Before we take a look at the main US Index, lets see where China is. Sadly, Prof. Malkiel has been very late on the curve with his new book From Wall Street to the Great Wall: How Investors Can Profit from China’s Booming Economy, behind Mr. Rogers and me, Lord Wallaston :), in pointing Chinese investment opportunities. Since it topped in October the China ETF (FXI) went down close to 40%. Then it recovered close to 27%. We are still down close to 27%.

    screenhunter_02-may-15-2245.jpg

    Where are people making money and what sectors are getting the most action. A cursory look shows that Energy, Technology and Industrials have the highest % of stocks above 50day moving average, versus Financials and HealthCare which are not that popular. This below is the NASDAQ index:

    screenhunter_03-may-15-2258.jpg

    BOOK: I am almost done with Beating the Market, 3 Months at a Time: A Proven Investing Plan Everyone Can Use (Hardcover). Before I write a review, I want to tell you that I already know how to outperform the market just by reading this simple book. However, this book cannot teach you discipline, and you need to work out a plan on your own.
    HOW TO MAKE MONEY LIKE ICAHN

    Start a law firm, and specialize in proxy fights. In the case of Yahoo, after MSFT pulled its offer, the stock tanked. The next day Icahn was buying YHOO shares in the thousands! Why? Because he had a plan; he wrote a letter which over the last few days sent the stock skyward 10-14%. Nice profit. Did he buy options too? Damn, see why you should have paid attention in English 101! Bottom line: Money goes where money is; not the other way around.

    • Text of Yahoo reply to Icahn
    • Text of Icahn letter to Yahoo

    This below is Lehman’s CFO Erin Callan. I am hoping to get an interview with her next month, cross your fingers. (not legs, that is defensive!!)

    [Erin Callan photo]

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